A note from the desk of Brent DeGroot, Brokerage Health Sales Director for Mutual of Omaha.
The marketplace for extended care coverage has expanded in recent years with the entry of various products, especially on the Life side. While each client and their agent/advisor need to determine the solution which is right for them, I want to point out some of the benefits of a stand-alone LTCi policy and what a wonderful investment it can be.
I have included here a copy of our marketing piece which discusses the benefits of Stand-alone LTCi – comprehensive coverage, tax benefits, and state partnership protection; just to name a few.
Also, the return on investment for a traditional LTC policy can be quite impressive. Below are a couple of examples from the Break Even Analysis feature which is included in our MutualCare Solutions software. Rates used were for Nebraska.
Example #1 - A single female age 65 when purchasing coverage of $5,000 a month with a 4 year benefit period and 3% inflation for 20 years. If she went on claim at age 75, it would take just 226 days for her to be paid back the premium paid in.
Example #2 - A married male age 55 when purchasing the same coverage and going on claim at age 75, would receive all premiums back in benefits in only 112 days.
Both clients then have the potential to receive hundreds of thousands of dollars in benefits above what they have paid in. A great return on their initial investment. Not to mention piece of mind knowing they are covered, and the tremendous help this coverage can be by not creating hardships to the family dynamic.
Please consider the many benefits of traditional LTC when meeting with your clients. The benefits are many and the investment return can be great.
Brent DeGroot, LTCP, CLTC
Brokerage Health Sales Director - LTCi, Mutual of Omaha